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Polymetal reports solid production results for the first quarter
StockMarketWire.com
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Polymetal has recorded its all-time highest quarterly production from Varvara and strong performance across other assets, while gold equivalent production for the first three months of 2021 grew 3% year on year.
Revenue for the quarter increased by 20% year on year to US$593 million on the back of higher gold and silver prices.
A traditional lag between silver concentrate production and sales at Dukat is expected to close in H2 2021 as well as a lag in gold sales primarily related to Dore from Kyzyl conсentrate.
The company's net debt decreased by US$ 29 million during the quarter to US$ 1.32 billion as Polymetal generated positive quarterly free cash flow despite seasonal inventory accumulation.
Construction and development activities at Nezhda and POX-2 projects progressed on schedule even amid continued tightness in the construction contractor market and Covid-related cross-border travel restrictions. Nezhda is scheduled to achieve mechanical completion on 1 September, 2021 and produce first concentrate on 1 November, 2021.
Polymetal has confirmed its 2021 production guidance of 1.5 Moz of gold equivalent. It also maintains the full-year cost guidance of US$700-750/GE oz for TCC and US$925-975/GE oz for AISC. The cost guidance remains contingent on the Russian rouble and Kazakh tenge exchange rate dynamics.
'In Q1 2021, Polymetal delivered strong production, strong free cash flow, and steady progress across development projects,' said Vitaly Nesis, Group CEO of Polymetal. 'Covid-related construction cost inflation remains a pressing concern despite gradual improvements in the epidemiological situation.'
At 8:01am: (LON:POLY) Polymetal International PLC share price was 0p at 1699.5p
Story provided by StockMarketWire.com
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